General Liability, Workers’ Compensation, and Errors & Omissions are not standard parts of Commercial Property coverage. Acts of God, including hurricane, earthquake, or flood, are also not typically covered and require separate coverages to protect property.
The property protected under a Commercial Property insurance policy can include assets like accounts receivable, computers, and lost income in addition to the building, that is either leased or owned.
This insurance essentially provides the same protection to businesses that consumers receive from property insurance, with the added benefit of typically being able to deduct the cost of the premiums as expenses. Commercial Property insurance protects these assets from risks that include fire, theft, and natural disasters.
A few types of business owners who need Commercial Property insurance include:
Coverage is required to meet mortgage qualifications to repair or rebuild property if damaged or lost altogether.
Commercial Property Tenants
Tenants must provide a certification of insurance listing the coverage amounts, policy dates, and landlords added as an additional insured.
Real Estate Investors
Protect apartment buildings and fix-and-flip structures while under business ownership.
Commercial Property Insurance
When determining how much a business should pay for Commercial Property insurance, the value of assets is the primary factor. Before meeting with an agent, a company should take an inventory of their physical assets located at their property to help determine what the replacement value and level of coverage should be.